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Peak Resorts/ Hunter Mountain

post #1 of 5
Thread Starter 
Any updates on Peak Resorts/ Hunter Mountain? It's been somewhat quiet for the last month or so...
post #2 of 5
post #3 of 5

The easy to read version:

 

http://www.bizjournals.com/stlouis/news/2016/07/14/peak-resorts-blames-warm-weather-as-loss-widens.html

 

"WILDWOOD, Mo., July 14, 2016 (GLOBE NEWSWIRE) -- Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner and operator of high-quality, individually branded ski resorts in the U.S., today reported results for the fourth quarter and full year of its 2016 fiscal year ended April 30, 2016.

Highlights include:

  • Revenue for fiscal 2016 was $95.7 million.
  • Fiscal 2016 net loss was $3.3 million, or 23 cents per share.
  • Reported EBITDA* for fiscal 2016 was $16.2 million.
  • Resort operating expenses were down $0.5 million for the full year.
  • During the spring, demand was strong for season passes for the 2016-2017 ski season; sales were up 40 percent in units and 29 percent in dollars over the prior year through April 30.
  • Resort offerings expanded through acquisition of Hunter Mountain; financial results of Hunter Mountain were included in Peak’s results starting on the date of the acquisition, January 6, 2016."
post #4 of 5

Revenues of $45.5 million fell 3.3% year over year even though this quarter included Hunter for the entire period, versus a year-ago. 

 

Hunter missed its expectations because the late spring ski season was worse than anticipated, and these revenues flow in with a high contribution margin.

 

Peak said data from the NSAA that a historically warm winter drove Northeast skier visits industry-wide down 28.1% and 16.7% in the Midwest.

 

Peak said combined Northeast and Midwest skier visits down 25% to 1.2 million.

 

Peak's Northeast visits down 23% to 850,000, including with benefit of Hunter.

 

Peak's Midwest visits down 30% to 450,000.

 

Total skier visits of 150,000 in March and April were down 55% from the year-ago.

 

Peak continues to wait for approval of the first EB-5 petition before it can release restricted cash held for the Mt. Snow EB-5 project. 

 

"While we are in the final stage of this process, we have no direct insight into the government's approval timeline."

 

Approval of the first petition had been expected within four weeks of government approval of the Mt. Snow project on May 25. 

 

Because of the delay, Peak does not now expect to be able to complete the Westlake project in time for this upcoming ski season.

 

This project will increase water capacity and early-season snow-making coverage.

 

$5.4 million cash balance was the lowest for Peak in the fourth quarter in years. Cash commonly declines in F1Q versus F4Q.

 

So the timing of EB-5 petition approval is important.

 

With release of the restricted cash, Peak can recover $12 million of pre-funded capex, plus a 15% management fee.

 

Peak tripped an interest covenant that requires it to set aside $3.3 million of cash for its lender. The lender has deferred immediate set-aside.

 

CFO Stephen Mueller said the company has the ability to obtain $10 million of bridge debt financing.

 

Peak is waiting to tap this to see if the EB-5 funds come through fast enough to cover working capital needs. 

post #5 of 5

Sounds like Peak found a way to get new money to keep things going.  One investor is willing to buy enough stock to provide about $20 million.  Already own a fair number of shares.  The investor would get annual dividends worth about $1.6 million.  Not a done deal yet.  Still subject to a shareholder vote.

 

http://www.newenglandskiindustry.com/viewstory.php?storyid=471

 

The stock has done well in the last week or so.

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